What is difference between active under contract and pending

Q: Does pending mean the same as under contract?

Under Contract is probably the most accurate way to describe a pending or contingent sale. It means the same as the other statuses above; a buyer and seller have agreed to terms and have executed a contract. But, the contract has yet to go to closing.

In real estate, there are two main statuses a property can be in after an accepted offer: under contract and pending.

Table of Contents Show

What does under contract mean?
What does pending sale mean?
How do you know if a property is pending vs under contract?
What does contingent mean?
Can you still make an offer on a home if it is under contract or pending?
Which is better pending or under contract?
What is the difference between pending and active?
Does pending mean the same as under contract?
What is the meaning of active under contract?

Both mean the property is expected to be sold, but they have different implications for buyers, sellers, and real estate agents. Understanding the difference between under contract vs pending is important for everyone involved in a real estate transaction.

Below we highlight the key differences so buyers know what to look out for when searching for listings.

What does under contract mean?

When a buyer makes a formal offer on a home and the seller accepts the terms, they are typically said to be "under contract" or "under agreement" depending on where you live.

This means that the buyer and seller have reached an agreement in principle, and the home is now considered to be in escrow. While there are still a few steps that need to be completed before the sale is finalized, it is generally considered to be a done deal.

The buyer's offer will likely be marked as "under contract" or "in contract" in the MLS, and other interested buyers will usually be informed that the home is no longer available. In most cases, the sale will go through without any problems, and the buyer will soon be able to move into their new home.

What does pending sale mean?

When a property is marked as "pending," it means that the property is under contract and that all contingencies have been cleared. A contingency is a condition that must be met in order for the sale to go through. Once all of the contingencies have been met, the property is then considered pending.

This means that the sale is likely to go through, barring any unforeseen circumstances. At this point, the property is typically removed from the market and is no longer available for showings.

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How do you know if a property is pending vs under contract?

Once a seller and buyer have agreed on all the terms of a deal and the seller has accepted the buyer's offer, the listing status will usually be changed from "active" to "under contract" or "pending" by the seller’s agent in the MLS.

When looking at listings online, look for the status of the property. Most real estate sites prominently display the status on each listing and allow you to filter your search results for active for sale listings only.

What does contingent mean?

When a home is listed as contingent, it means that the sale is not yet final. There are several contingencies that can apply to a home sale, but the most common are financing and inspection contingencies.

A financing contingency means that the sale is contingent upon the buyer being approved for a mortgage. An inspection contingency means that the sale is contingent upon the buyer being satisfied with the results of a home inspection. These contingencies are typically valid for a set time period - usually quoted in days.

In both cases, if the buyer is unable to obtain financing or satisfy the inspection contingency, they may back out of the sale without forfeiting their earnest money deposit.

Can you still make an offer on a home if it is under contract or pending?

Yes. Buyers may still make an offer on a home that is under contract or pending, but it depends on the particular transaction.

If the seller has already signed a contract with another buyer, then you would likely be making a backup offer. The seller would only be able to consider your offer if the first buyer backs out for some reason, or if the buyer and seller reach an impasse that legally allows the seller to walk away from the deal.

Before making an offer on a home that is under contract or pending, be sure to consult with a real estate agent to understand the contract implications for the seller.

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Which is better pending or under contract?

For a home to be listed as pending, that means the home is under contract and there are no longer any contingencies on the sale. Once a property is listed as pending, the home is much closer to actually being sold than when it's under contract.

What is the difference between pending and active?

The difference between Active (Meaning Actively on the market for purchase) and Pending (Contract has been accepted).

Does pending mean the same as under contract?

'Under Contract' is probably the most accurate way to describe a pending or 'contingent' sale. It means the same as the other statuses above; a buyer and seller have agreed to terms and have executed a contract. But, the contract has yet to go to closing.

What is the meaning of active under contract?

When a listing is in Active Under Contract, that property is under contract, but is still accepting showings and being actively marketed. Days on Market (DOM) and Cumulative Days on market (CDOM) will continue to accumulate when a listing is in Active Under Contract status.